Review of Indonesian Property Industry 2017 as well as Property Projection 2018

By : Ridwan And Aldi Firhand. A | Saturday, December 23 2017 - 16:12 IWST

Property Illustration
Property Illustration

INDUSTRY.co.id - Jakarta - Toward the end of 2017, a series of important events in the property industry sector occurred throughout the year.

Starting from the government policy that has a big influence in the property sector, such as BI 7-Day Repo Rate, Tax Amnesty closing, adjustment of Housing Financing Liquidity Facility (FLPP), Economic Policy Package, presence of new infrastructure projects that provide potential for property business, a highly dynamic property market.

Referring to the record of Rumah.com, Property Index 2017, shows that the national property index edged up 0.4 percent in Q1-2017 when compared to Q1-2016. Meanwhile, in Q2-2017 grew by 0.97 percent compared to the same quarter of the previous year. (Q-o-q). While in Q3-2017, the property market looks stable.

While in Q4-2017 until the end of November 2017 the national property index increased by 0.91 percent.

While on the property supply volume side, the index showed little fluctuation which in Q1-2017 recorded an increase of 11.4 percent when compared with the same quarter of the previous year, subsequently decreased by 2.1 percent in Q2-2017 (q-o-q).

In Q3-2017 supplies recovered and increased up to 10.7 percent (q-o-q) while in Q4-2017 until the end of November 2017 decreased by 9.23 percent.

On the consumer demand side, according to Rumah.com Property Affordability Sentiment Index H2-2017, Jabodetabek is still the coveted location for the respondents who bought the house, with Jakarta in the top position, followed by Bogor.

Outside Jabodetabek, Bandung became the next favorite city, followed by Surabaya and Semarang. While the apartment has become the primary choice of occupancy to be purchased, in addition to cluster tread homes.

The national property market in 2018 is expected to be more positive, continuing the trend that has been formed throughout 2017.

On the supply side, the slowdown in the property market in mid-2018 as a result of Idul Fitri and the 2018 Serial Election may occur, as well as ahead of the 2019 Legislative Election and Presidential Election.

While on the demand side, the largest portion will come from a medium-sized house priced below Rp700 million. Consumers will look for cluster-type housing, especially in large-city satellite areas with access to toll booths and mass transportation facilities.

As interest rates grow for Apartment Owners Loans, there will be moderate growth in residential types of apartments.

"In general, Indonesia's property market in 2018 will be more interesting and prospective compared to the year 2017," said Ike Hamdan as Head of Marketing Rumah.com in Jakarta (22/12/2017).

According to him, one year before the 2019 political year, the property market will be a little more enthusiastic and this is a great opportunity to buy property, either for habitation or for own use or as an investment vehicle.

"I am optimistic that demand for property will be good next year and next year will be a flashback of the growth of the property industry in Indonesia," he concluded.

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